In their notes the judging panel said "As private investors begin using more of the trading tools of professionals, one innovation this year stands out as being of utmost importance. LIFFE's Universal Stock Futures allow private investors to trade futures on individual company securities to add or reduce risk in their portfolio. The ability to short individual companies means investors can bring methods of hedging to their portfolios in uncertain times and to quickly increase their exposure to rising markets. An important aspect of these contracts is the ability to reduce exposure to an individual holding without physically selling the shares and incurring a taxable gain. This is a terrific advancement for private investors."
LIFFE's Universal Stock Futures, launched on 29 January 2001, are futures contracts on the shares of individual companies. This selection of global companies are traded on one electronic trading platform, LIFFE CONNECT™, cleared and settled through a single clearing system and traded under a single regulatory regime. The contracts provide easy, cheap and efficient access to highly liquid stocks covering a wide range of sectors including telecoms, technology, pharmaceuticals, energy, banking and retail. From 18 April a total of 118 Universal Stock Futures contracts will be listed.
Karen Dixon, LIFFE's Marketing Director said, "With the introduction of a further 22 Universal Stock Futures on 18 April, LIFFE offers investors the opportunity to buy and sell futures contracts on 118 blue-chip stocks listed in the UK, continental Europe and the US. The Exchange is pleased that its Universal Stock Futures have been recognised as an innovative trading tool providing investors with cost efficient access to global equity markets."
